Mayor bids ‘velkommen’ to Vestas Wind Systems

PORTLAND – Denmark-based Vestas Wind Systems, the world’s largest manufacturer of wind-powered turbines, announced Wednesday that the company is entering into final negotiations to move its North American headquarters to Portland.
Vestas American Wind Technology Inc., the company’s American subsidiary currently located in Palm Springs, Calif., is proposing to move its 200 sales and technical support jobs to Portland and build a new manufacturing plant in the Rivergate industrial area that could employ up to 1,000 people by late next year.
Gov. John Kitzhaber, Mayor Vera Katz, the Oregon Economic and Community Development Department, the Portland Development Commission, and Port of Portland Executive Director Bill Wyatt, who worked to bring the company here, all expressed their enthusiasm about the announcement.
“On behalf of the citizens of this city, I wish to ‘velkommen’ Vestas to Portland, Oregon,” declared Katz during the 9 a.m. announcement held in the Council Chambers.
“I am very proud to welcome Vestas to Oregon,” said Kitzhaber. “Vestas will be a major employer in Oregon, and its record as a productive, responsible corporation will no doubt play a positive role in our community. I can’t think of a company better suited to our business climate and to the Oregon way of life.”
Vestas will build a 700,000-square-foot facility on 113 acres in the Rivergate industrial area consisting of several manufacturing buildings, storage buildings and yards, and office buildings. The company manufactures a large part of the components of a wind turbine including towers, nacelles (generator and control equipment) and blades.
Andersen Construction Co. Inc. has been chosen as the general contractor for the facility. IDC of Portland will be the project designer.
The company’s decision to build in the Northwest largely hinged on the recent passage of the Energy Production Tax Credit which was signed into law March 9. Oregon’s federal congressional delegation played an integral role in moving the tax credit forward.
The company’s largest current customer in the Northwest is Vansycle Ridge wind farm being developed in the Columbia River Gorge, with Portland General Electric as a participant. Vansycle Ridge, developed by Florida-based FPL Energy, ordered nearly 1,000 units from Vestas in 2001.
Vestas representatives said they appreciated the support shown by U.S. Sens. Gordon Smith, and Ron Wyden, and U.S. Reps. David Wu, Greg Walden, Earl Blumenauer, Peter DeFazio and Darlene Hooley.
“The city is thrilled at this news,” said Katz. “With the nation’s and the state’s highest unemployment rate, these jobs could not have come to Portland at a better time – and, these are exactly the types of jobs we want to attract – family wage jobs in sustainable industries. I want to thank the staff at the Portland Development Commission and the Portland Ambassadors for their efforts to bring these jobs home.”
Company representatives conducted an exhaustive search throughout the West to find a location that best met Vestas’ growth needs and corporate culture. The key benefits of the Rivergate site were its size and access to local transportation networks including strong rail connections, good freeway access, and the Port’s T-6 container and barge facilities, as well as proximity to the regional Portland/Vancouver workforce.
“The Port’s industrial lands enable us to connect Portland workers with companies that rely on the excellent transportation access Rivergate provides, so we’re happy to have helped recruit Vestas to locate there,” said the port’s Wyatt. “While Vestas will receive excellent river, rail and road access, Portland will get a new environmentally sustainable business and the opportunity to broaden the region’s Northern Europe trade market. Our hope is the company will both bring in components via air and sea, and will also use our transportation connections for exporting finished product.”
Vestas holds a 24 percent market share in the wind power manufacturing industry – an industry which is expected to grow 15 to 20 percent annually. It is estimated that alternative energy sources may optimistically make up 10 percent of the global energy market by 2010. Vestas sales for 2001 were about $1.1 billion up from $792 million the year before.